This Deliverable is composed of the following papers:

Good Governance in Trade Defence Measures by Antonella Forganni

Abstract: This chapter studies good governance in trade defence instruments with regard to regulations as well as practices and with a specific focus on the European Union and China, two major players of international trade that propose, in terms of global governance, different models. The concept of trade defence governance is framed by distinguishing rules and practice: the high standards of the former are necessary, but not sufficient to assure high standards of the latter. Firstly, the analysis provides an overview of the most debated aspects of the rules governing trade defence, in particular the antidumping proceedings. Secondly, it highlights the main objectives to be pursued in order to properly conduct the investigations: protectionist intents should be avoided, as well as the politicization of the trade defence measures. The former results in an excessive use of such instruments, the latter leads to their use for objectives other than the ones which they were established for.

 

In Front of the Melting Glacier: An Introduction to Chinese Takeover Regulations by Charlie Xiao-Chuan Weng

Abstract: The Chinese unique historical economic development and ownership structure shaped today’s takeover market and related regulations. The Chinese takeover law has been heavily influenced by other legal systems and jurisdictions, such as the legal regime of the United States of America. Since China is a state-owned economy dominant country, its agency problem is idiosyncratic from the countries where the takeover law is transplanted. This factor, in addition to the complicated central-local government relationship issue, makes the enforcement of takeover frequently deviate from the legal framework. This chapter aims at not only examining the basic takeover legal institutions but also several obvious conflicts between the existing regulations and its enforcement in practice. Meanwhile, it also notes that: given the ownership structure is changing with the rapid and efficient economic reform in China, the Chinese traditional agencies problem might be changing. The current transplanted takeover law and regulations could be the wrong antidote. The legislature must be prepared for a major takeover law revision in the future.

 

Role of Laws and the Development of the Financial Market in China, by Donggen Xu & Dawei Xu

Abstract: Laws and regulations play an important role in the improvement of the Chinese financial market. In fact, new rules have been implemented to advance the development of that market in China in recent years. These laws consist of regulations related to the financial institutions, as well as securities law. The Chinese financial law is a combination of regulations originated from both the common and civil law systems. The development of the financial market in China and its legal reform demonstrate that the laws are frequently promoted by financial activities, which develop more rapidly than that of laws in China. Laws are the reflection of financial activities and are made to regulate financial behavior, which leads to a financial market that runs efficiently. The Chinese banking regulatory commission and the China securities regulatory commission are major financial regulators responsible respectively for the regulation of the currency market and the capital market. The development of the Chinese financial market in addition to the Shanghai financial hub is closely connected with the participation and involvement of foreign investments and financial institutions that triggered the process.

 

Investments, good governance and Chinese harmony by Federica Monti

Abstract: Chinese leaderships, have taken on the political power since the end of the Maoist period to the present day, are remembered for their slogans, which summarize the main characters of the various lines of government adopted. Although each of them has embraced at first glance different paths, in guiding the country towards the economic revival, each leader has strongly remained cohesive to the primary objective, which later became common of all leaders and firstly launched by President Deng Xiaoping, which were, and still be oriented, to the revive China and its economy in the world. The fast economic development path, which overwhelmed China during last thirty years, couldn’t be devoid of serious social consequences, first and foremost coming at the cost of environmental quality as environmental pollution, becoming then an increasingly serious problem for China. This chapter examines the dominant processes and key issues of China’s governance reforms over the last 30 years since the start of the reform and opening policies.